Georgia's state tax is only one part of the contractor premium

Georgia uses a flat individual income-tax structure in the current model, but a W-2 and 1099 offer still cannot be compared by looking only at the state rate. Contractors generally carry the full self-employment tax burden and can have deductible business costs, self-paid health insurance and fewer paid hours than an employee.

The calculator combines the audited 2026 Georgia path with the federal model and solves for the contractor gross needed to match the W-2 take-home target under the inputs you provide.

Model the costs that actually move from employer to contractor

Enter recurring business expenses you expect to pay yourself, such as software, licensing, professional insurance, accounting, equipment or other legitimate operating costs. Add the annual health-insurance amount you expect to bear and use a billable-hours estimate that reflects unpaid time off and non-billable work.

Those inputs can matter as much as the headline tax rate. A contractor with low overhead and stable billable hours may need a different premium than someone replacing expensive benefits or expecting significant downtime.

Use the break-even result as a negotiation reference

The annual break-even result estimates the 1099 gross required to match the modeled W-2 take-home. The hourly result converts that amount using your selected billable hours so you can compare an hourly contract with a salaried offer on a consistent basis.

The result is a planning estimate, not legal or tax advice. Benefits, contract stability, classification rules and personal tax circumstances can justify a higher target or professional review before you accept an offer.